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How Much Money do you Need?
Having sufficient capital is essential to business success. It is important that you be well financed during the startup stage of your business. In addition, we recommend that you have personal living expenses reserved for the first 6 months of your start-up to let your business get off the ground.
Pre-opening, Start-up Investment
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Low |
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High |
| Franchise Fee |
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$40,000 |
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$40,000 |
| Initial Inventory* |
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$75,000 |
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$150,000 |
| Travel & Living Expenses while attending Training |
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$2,000 |
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$6,000 |
| Leasehold Improvements |
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$119,500 |
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$155,000 |
| Furniture & Fixtures |
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$25,000 |
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$60,000 |
| Lease Deposits |
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$3,200 |
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$12,000 |
| Deposits and Prepaid Expenses |
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$7,500 |
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$9,000 |
| Grand Opening Advertising |
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$6,000 |
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$6,000 |
| Rent |
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$13,200 |
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$19,500 |
| Licenses and Permits |
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$300 |
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$1,500 |
| Insurance |
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$4,800 |
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$4,800 |
| Additional Funds** (3 Months) |
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$108,500 |
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$186,200 |
| Totals |
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$405,000 |
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$650,000 |
*Initial inventory will vary based on the number of showrooms you will complete.
** Additional funds include payroll, advertising and other costs for first 3 months, plus recommended cash reserves for inventory purchases which occur before receipt of final payment. Doing corporate business frequently requires net 30 to net 45 billing terms, requiring the franchisee to pay for initial inventory and wait a period of time to receive final payment. Corporate business will increase your working capital requirements.
Written financial documentation is required as part of your franchise application and approval process.
This total is an estimate of your pre-opening initial investment and the expenses you will incur during the first 3 months of store operations. These figures are estimates only and TheaterXtreme cannot guarantee you will not have additional expenses. Your exact investment depends on several factors, including store size, local market conditions, business acumen, condition of premises, inventory levels, transportation costs, financing costs and similar factors. Cost will increase as the number of square feet increases.
Continuing Fees:
Royalty Fee—4% of gross sales
National Advertising fee—2% of gross sales.
Franchise Term:
10 years with a 10-year renewal option
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